Atherton schools to spend nearly $537,000 of fund balance during 2011-2012 fiscal year

BURTON, Michigan -- School board members approved a budget revision that sees the district reaching further into Atherton's fund balance to fill a financial home.

View full sizeFile photoAtherton schools will spend nearly one-third of its fund balance during the 2011-2012 fiscal year, ending June 30, 2012

The revised 2011-2012 budget shows the school district taking $536,964 from its fund balance -- or around one-third -- to counteract a revenue shortfall for the fiscal year, stretching from July 1, 2011 to June 30, 2012.

Daniel Romzek, Atherton's finance director, said the move leaves the district with 12.3 percent of its fund balance at $1,001,286, a figure down from $1,538,250 following the 2010-2011 fiscal year.

The district expects to receive more than $171,000 in one-time state aid for financial best practices and a Michigan Public School Employees' Retirement System, or MPSERS, credit to help offset increases for mandatory pension contributions on salaries of schoo employees from 20.66 percent in 2010 to 24.46 percent in 2011.

Romzek said the school district lost $128,773, or $6,846 per student, in state aid with a lost of 18.81 students from a blended count of February and October pupil figures.

The district has saved money from program and staff reductions, as well as sharing costs for a special education director by entering a shared services arrangement with Atherton and Bentley schools.

Additional expenses have included $64,371 for a middle school and high school dean of students not in the original budget and $75,922 in repairs that were not finalized before the end of the 2010-2011 fiscal year.

Future concerns for the district, Romzek said, include the one-time credits running out, slow economic recovery and a potential three percent increase to MPSERS for the next fiscal year.

"There are going to be some challenges facing us next year," he said. "The district is very financially sound, but it's because of the prudence of the board."

Board President Don Embury said they'd like to see between a 10 to 15 percent fund balance "because it helps the cash flow of the school" and is recommended by auditors.

While Board Vice President Paul Hildreth commented "It's not easy to listen to, but

we've got to do it" in terms of the budget numbers, Embury said "I feel comfortable, we the board feel comfortable where we are at (financially) right now."